(Reuters) - Network equipment maker Riverbed Technology Inc
U.S. federal spending has slowed due to automatic cost cuts that came into effect in March after Congress failed to find an alternative plan to reduce a yawning budget deficit.
Riverbed said its government business accounted for 18 percent of total revenue in the second quarter.
The company is also struggling with the integration of its acquisition of Opnet, which has a high exposure to government spending.
Riverbed bought Opnet, which makes software to manage traffic on networks, last year to counter a slowdown in its wide area network (WAN) optimization business.
Spending on WAN optimization, a market which is dominated by Riverbed, is expected to slow down this year, analysts have said.
Riverbed, whose products can boost data speeds over a local network, expects third-quarter adjusted earnings of 23 cents to 24 cents per share, on revenue of $265 million to $270 million.
Analysts on average were expecting earnings of 26 cents per share on revenue of $274.5 million, according to Thomson Reuters I/B/E/S.
Riverbed's results are in contrast to those of rivals Juniper Networks Inc
The company posted a smaller-than-expected 26 percent growth in second-quarter revenue to $250 million.
It reported net loss of $16.5 million, or 10 cents per share, compared with net income of $18 million, or 11 cents per share, a year earlier.
Excluding items, Riverbed earned 22 cents per share.
Analysts expected earnings of 22 cents per share on revenue of about $257.7 million, according to Thomson Reuters I/B/E/S.
Riverbed shares were down 15 percent at $14.99 in after-market trading.
(Reporting by Neha Alawadhi in Bangalore; Editing by Saumyadeb Chakrabarty)
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